Economy

Krugman to Democrats: do you want Phil Gramm to have Paulson's new powers?

There seems to be an unspoken rule in politics that the Republicans have broken at least a couple of times over the course of the Bush Administration – don’t create precedents and new powers that you don’t want used against you when you next fall out of power. The failed idea of a permanent GOP majority was probably the reason for the Republicans’ crossing of this particular line, but nonetheless it’s useful to remind all politicians every once in a while that you really don’t want to give your ideological opponents tools they can use against you.

This morning I stumbled across a blog post Paul Krugmam made to his Conscience of a Liberal NYTimes blog on Tuesday. In it he says that he’s been pointing out to liberals that Paulson’s dictatorial powers could well fall to Phil Gramm, John McCain’s unofficial economic adviser, in a little over four months. In case you don’t know why this should be downright terrifying, Phil Gramm was responsible for the Gramm-Leach-Bliley Act of 1999 that eliminated Depression-era laws requiring that banking, insurance, and brokerage activities be kept separate. In other words, it’s some of Phil Gramm’s work in the Senate that’s responsible for today’s financial meltdown.

Krugman also pointed that, were Obama to win, he could come up with an liberal economic name to run the Treasury that would scare the hell out of Republicans – “Paul Krugman.”

I can think of many far worse names to head up the Treasury Department. Henry Paulson comes immediately to mind.

2 replies »

  1. Arrest all fraudsters.

    Prosecute them all.

    Now is the time for some of that “law and order” they are so gung ho about when
    directed at others.

    Stealing hundreds of billions is not okay.

    (Is it, Mr. Obama???)

    VIDEO: Ohio Congresswoman calls for investigations

    Show Some Backbone Against the Bailout?
    By RALPH NADER
    http://counterpunch.org/nader09252008.html

    BETTER THAN ANY BAILOUT
    http://crimesofthestate.blogspot.com/2008/09/better-than-any-bailout.html

  2. Guys,

    The economy has an 83% chance of getting very hairy(1907 type hairy) for the next few weeks, according to my calculations. You might want to keep a little more cash on hand than usual just to be on the safe side. No need to blame anyone, as there’s plenty to go around on all sides. Do the action now, and worry about the blame later.

    I hope I’m wrong.

    Jeff

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